Question

Select the proper option from the options given below and rewrite the sentences.

________ is one of the modes of entry which requires high level of risks.

(a) Licensing
(b) Franchising
(c) Joint Ventures

Answer 1

Licensing is one of the modes of entry which requires high level of risks.

Explanation:
Licensing is considered a risky mode of entry into a foreign market because through this mode, the trade secrets of the licensor have the danger of getting leaked. Also, after the contracts expire, the licensee could sell the products in some other regions.
The correct option is A.